Market Update [November 21] – VN-Index rebounds thanks to bargain hunters

21/11/2018 17:04

Report: Market Update
Source: ASEANSC
ASEANSC’S VIEWPOINTS

On Wednesday (October 21st), the VN-Index bounced back from earlier losses to finish higher as bargain hunters moved in. Particularly, VNM, VHM, VRE, VCB and BID were the largest contributors, rising 2.32%, 1.07%, 3.10%, 2.97% and 0.95% respectively.

By the closing bell, the VN-Index added 3.54 points (+0.39%) to close at 922.56. Trading volume was more than 150 million shares, worth nearly VND4,000 billion. Breadth was positive, with gainers topping losers 149 to 136. Foreign investors net sold nearly VND180 billion on the HSX.

In view of technical analysis, the VN-Index’s chart shows a long green candlestick, and breaks out the resistance level of 920, are quite positive. Therefore, we believe that, in a positive scenario, the VN-Index will test the nearest resistance range of 930 – 940, at which investors can sell a part of the existing short-term portfolio. In a negative scenario, the nearest support range of VN-Index is forecast at 910 – 920, the next support range is expected at 890 – 900. Based on Kelly formula, the recommended proportion of the portfolio is 50% cash/ 50% stocks.

Please see the attached file for more details.